Karachi: Mari Energies Limited (MARI) has reported record production levels for the fiscal year 2026, reaching 41.28 million barrels of oil equivalent (MMBOE), an increase from 39.13 MMBOE in fiscal year 2025. This achievement comes despite challenges posed by geopolitical tensions affecting LNG supply chains, which inadvertently boosted production. However, the company faced setbacks, including the recent loss of the SNGPL pipeline.
According to JS Global, MARI's management outlined future production goals, anticipating output from the Ghazij/Shawal field to reach 120 million cubic feet per day (mmcfd) by the end of fiscal year 2027, with a further increase to 222 mmcfd expected by fiscal year 2028. The field is projected to compensate for the declining output of the HRL reservoir in the long term, with its maximum potential estimated at 400 mmcfd, requiring several years to fully realize.
To achieve the anticipated output from Ghazij/Shawal, the company anticipates a capital expenditure of approximately $1 billion over the next five to six years. Of this, $250 million is expected to be financed by fertilizer partners, with the remainder covered by MARI. The development plan includes the drilling of over 100 wells, some of which have already been completed.
In North Waziristan, MARI has revised the potential output from the Shewa and Spinwam areas to 200 mmcfd from a previous estimate of 300 mmcfd. This adjustment follows a government gas demand report and is compounded by security issues in the northern region, which also restrict the deployment of new drilling rigs.
Security concerns have also led to increased operating costs, estimated at $3.5-4 per barrel of oil equivalent (BOE). However, under a new government policy, an additional 40 cents per unit of gas discovery has been approved to offset these rising costs, benefiting fields like Spinwam which are eligible for the new pricing scheme.
Despite announcing the discovery of the Maiwand Block 28 in 2024, security challenges have delayed its operational commencement, now expected within the next 12 to 18 months. Similarly, the Soho field, containing high levels of carbon dioxide, will require a sweetening plant to commence production, potentially taking an additional 24 months.
MARI's diversification strategy continues with projects in minerals, digital infrastructure, and emissions mitigation. The company also reported a Reserve Replacement Ratio of 375%, with reserves standing at 1,029 MMBOE. For fiscal year 2026, operating profit reached Rs82.6 billion, while net profit was Rs87.1 billion, alongside a dividend payout of Rs27 per share.